Have you ever heard of the Maryland Purchase Program (MPP)? This is not to be confused with the Maryland Mortgage Program (MMP) which is a completely different program that covers the entire State of Maryland.

The Maryland Purchase Program is ONLY for Montgomery County and it offers a 3% loan that is completely forgiven if the buyer occupies the home for 5 years. If a buyer works in Montgomery County, they are also eligible for a loan of 5% of the sales price up to $10,000. This loan is repaid back to the County over 10 years at an interest rate of 5.00%. This means your buyer can get into a home with almost no money out of pocket if they work in Montgomery County! And even if they don't work in Montgomery County, they are still eligible for the 3% loan for the down payment.

Here are some guidelines of the program:

* The program is only for first time home buyers. The definition of a first-time home buyer is someone who has not had any ownership interest in his/her primary residence anywhere during the last 3 years.

* Borrowers do not have to be a current resident of Montgomery County or working in Montgomery County to use the MPP.

* U.S. citizenship is not a requirement.

* At least one borrower in the household must provide a certificate of completion of a first-time homebuyer education class.

* Household income cannot exceed HOC’s maximum income limits.  For a 1-person household the limit is $91,728, a 2-person household is $131,040 and a 3 person or more household is $152,880.

* The loan amount cannot exceed the conforming loan limit of $453,100.

* Property must be located in Montgomery County.

* Minimum credit score of 640 is required. Financing can be used for conventional or FHA loans.

* The MPP does not have a resale restriction on properties.

As always, please feel free to contact Denise with any questions.

Silver Spring MD Real Estate Listings, Washington DC Real Estate Listings, Bowie, MD  Real Estate Listings, Upper Marlboro MD Real Estate Listings, and the surrounding area.  The Watkins Team are your local Real Estate Experts available to assist you with all your real estate needs.  Looking for Realtors who can help you sell or purchase a home, our online services are available to assist you now and you can also email, text, or call us: The Watkins Team 202-489-5478.